$10$:$05$

$97$

ACC$237\_$APR$\_2022.$pdf

$\backslash$table$[[,$$$\text{'}000,$S$\text{'}000],[$Cash at bank,$100,],[$Inventory $1$ January $2021,2,400,],[$Administrative expenses,$2,206,],[$Distribution costs,$650,],[$Buildings$,10,000,],[$Plant and Equipment,$1,400,],[$Motor vehicles,$320,],[$Accumulated depreciation :$],[$Buildings$,,4,000],[$Plant and Equipment,,$480],[$Motor vehicles,,$120],[$Suspense$,,1,500],[$Retained earnings,,$560],[$Trade receivables,$876,],[$Purchases$,4,200,],[$Dividend paid,$200,],[$Revenue$,,11,752],[$Tax payable,,$1,390],[$Trade payables,,$1,050],[$Share premium,,$500],[$$$1$ ordinary shares,,$1,000],[,22,352,22,352]]$

Additional information

$($a$)$ Inventory at $31$ December $2021$ was valued at $$1,600,000.$ While doing the inventory count, errors in the previous year's inventory count were discovered. The inventory brought forward at the beginning of the year should have been $$2\mathrm{.}2m,$ not $$2\mathrm{.}4m$ as above.

$($b$)$ Depreciation is to be provided as follows:

$($i$)$ Buildings at $5\%$ straight line, charged to administrative expenses.

$($ii$)$ Plant and equipment at $20\%$ on the reducing balance basis, charged to cost of sales.

$($iii$)$ Motor vehicles at $25\%$ on the reducing balance basis, charged to distribution costs.

$($c$)$ No final dividend is being proposed.

$($d$)$ A customer has gone bankrupt owing $$76,000.$ This debt is not expected to be recovered and an adjustment should be made. An allowance for receivables of $5\%$ is to be set up$.$

Page $4$ of $10$

$($e$)1$ million new ordinary shares were issued at $$1\mathrm{.}50$ on $1$ December $2021.$ The proceeds have been left in a suspense account.

Required

Prepare the following:

$($a$)$ Statement of profit or loss for the year ended $31$ December $2021.$

$(7$ marks$)$

$($b$)$ Statement of changes in equity for the year ended $31$ December $2021.$

$(11$ marks$)$

$($c$)$ Statement of financial position as at $31$ December $2021.$

$(12$ marks$)$

All statements are to be prepared in accordance with the requirements of International Financial